Closing May Not Be Moving...

By
Real Estate Agent with EXP Realty 414-525-0563 57026-90 Broker

It amazes me when we get offers on our listings (sans vacant estates) how few times Buyers' Agents ask what the Seller would prefer for a closing Moving Vandate. There may well be  reasons when before a specific date presents an unnecessary challenge for the Seller. Sellers have all kinds of reasons: the completion date of new construction, start of new job, the school year beginning/ending, etc. The same may well be true for the Buyer who has a "ideal" time in mind for their move. In many areas...it is still a Sellers' Market and wise Buyers' agents ask the question: "What is the Sellers' desired closing date?" 

    Closing does not always mean moving. If the Sellers would prefer an asap closing date...amd the Buyer/lender can accomodate a 30 day painterclosing giving the Sellers their equity quickly, that can be the best of both worlds. If Buyers cannot make moving arrangements within that time frame....the closing can still take place. Buyers can paint, take their time with organizing cabinets, change the paint color in the bedroom, the shower head in the bathroom...the carpeting in the office...all without having to do a "work around" with furniture in place.

   The reverse can be true, Sellers need more time after closing to move out of the house.  In Wisconsin, this would require an "Addendum O" for Occupancy. In this document all the terms are spelled out clearly as the Seller, at closing, now becomes a tenant and the Buyer, the landlord. Insurance is maintained by both parties for what is theirs...access is allowed by the now landlord with specified notice. Utility bills. taxes and landscape maintenance are all assigned expenses. The largest expense is the per diem rate charged the tenant.  This can, in a Sellers market, be an excellent negotiation tool. 

 Offer to purchase   Some buyers pro rate their expenses...the mortgage and insurance become per diem costs.  This is not meant to be a profit producing number.  The strength a Buyer may add to an offer is to allow the Sellers (now tenants) X number of days at no charge. In our experience, this is generally not more than a week and adds benefit to a competitive offer.

   Closing does not always mean moving on the same day...it does mean an opportunity to negotiate an offer that works better for all concerned.

     This has been a real estate "lesson" post brought to you by Sally K. & David L.Hanson, Broker Associates with EXP Realty honored to be of service for all things real estate in southeastern Wisconsin.

Posted by

Sally K. & David L. Hanson, ABR, CDPE, CSS, e-Pro,ILHM, REDS


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Re-Blogged 1 time:

Re-Blogged By Re-Blogged At
  1. Will Hamm 01/10/2019 05:13 PM
Topic:
Real Estate Best Practices
Tags:
real estate closings
flexible terms in real estate closings

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Rainmaker
2,986,174
Wayne Martin
Wayne M Martin - Chicago, IL
Real Estate Broker - Retired

Good morning Sally. While possession at closing seems the norm today, years ago a seller typically retained possession for 30-45 days! Enjoy your day!

Dec 31, 2018 05:03 AM #1
Rainmaker
1,607,161
Lise Howe
Keller Williams Capital Properties - Washington, DC
Assoc. Broker and Attorney Licensed in DC, MD, VA,

Happy New Year!

Dec 31, 2018 05:09 AM #2
Rainmaker
3,016,092
Sally K. & David L. Hanson
EXP Realty 414-525-0563 - Brookfield, WI
WI Realtors - Luxury - Divorce

OK Lise Howe ...the race is on...uniform and track shoes in place !

Dec 31, 2018 05:15 AM #3
Rainmaker
576,650
Brenda Mayette
Miranda Real Estate Group, Inc. - Glenville, NY
Getting results w/ knowledge & know-how!

This is so true!  I recently had this conversation with someone who doesn't want to move in the winter & is currently in their 2nd home.  We can close & they can move in when they want. 

Dec 31, 2018 05:29 AM #4
Rainmaker
2,274,344
Brian England
Arizona Focus Realty - Gilbert, AZ
MBA, GRI, REALTOR® Real Estate in East Valley AZ

When all parties are on the same page, it certainly makes for a smoother and more enjoyable transaction!  Happy New Year!

Dec 31, 2018 07:23 AM #5
Rainmaker
2,894,714
Will Hamm
Hamm Homes - Aurora, CO
"Where There's a Will, There's a Way!"

Hello Sally and David,  You are right on with your blog.  We all need to work together and make it work for both buyers and sellers,  Always good to ask questions.  Can I reblog this in January 2019?

 

Dec 31, 2018 09:17 AM #6
Rainmaker
3,016,092
Sally K. & David L. Hanson
EXP Realty 414-525-0563 - Brookfield, WI
WI Realtors - Luxury - Divorce

Absolutely Will Hamm always feel free to help yourself !

Dec 31, 2018 09:21 AM #7
Rainmaker
5,021,940
Roy Kelley
Realty Group Referrals - Gaithersburg, MD

This is very good information to share with prospective home buyers and home sellers.

Dec 31, 2018 11:34 AM #8
Ambassador
3,645,031
George Souto
George Souto NMLS #65149 FHA, CHFA, VA Mortgages - Middletown, CT
Your Connecticut Mortgage Expert

Sally and David, Lenders are not fond of what we call a "Rent Back Option" around here.  If a Lender agrees to it, they will want a sizable amount of funds from the Seller to be held in escrow in case any damage is done to the property before they vacate the property.

Dec 31, 2018 04:19 PM #9
Rainmaker
3,016,092
Sally K. & David L. Hanson
EXP Realty 414-525-0563 - Brookfield, WI
WI Realtors - Luxury - Divorce

Not here George Souto ...both secure necessary insurance and life goes on...It doesn't happen often...but mot ever been a problem.

Dec 31, 2018 04:23 PM #10
Rainmaker
3,327,356
Sheila Anderson
Referral Group Incorporated - East Brunswick, NJ
The Real Estate Whisperer Who Listens 732-715-1133

Good morning Sally. Interesting and focused post. No you don't always need to move when you close.

Jan 11, 2019 07:12 AM #11
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Rainmaker
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Sally K. & David L. Hanson

WI Realtors - Luxury - Divorce
For All Things Wisconsin Real Estate...Call the Hansons
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